Designing the inner workings of the Troubled Asset Relief Program, now extended to help General Motors and Chrysler, is a Herculean task, but it's being done by pint-sized designers. Ennis Knupp & Associates, a small investment consultancy based in Chicago, has been hired by the U.S. Treasury to create internal investment controls and management systems for the bailout fund.

Ennis Knupp's $2.5 million TARP contract, signed in October, claims it must do everything from developing and maintaining TARP's "investment policies," to evaluating the government’s asset managers and assisting in their oversight. The Government Accountability Office audited TARP in December, and said the Treasury did not have enough monitoring procedures in place over its growing, $700.0 billion portfolio of assets. The agency said TARP needed to become more transparent, establish an "effective management structure" and "an essential system of internal control.”

Six core consultants from Ennis Knupp, a 122-person firm, are now quietly working on the assignment, and while they will not discuss the details of their TARP work, few had previously heard of the downtown Chicago firm being granted so much power and prestige by the U.S. government. "Nobody that actually works in the mortgage biz [sic] in either the primary or secondary markets really has much of a read on Ennis Knupp, let alone having ever heard of them,” observed Housingwire.com, which tracks developments in property and financial markets.

In 1970, the firm’s founders, James Knupp and Richard Ennis, used to run an investment consultancy at A.G. Becker. "Everyone had conflicts in those days. That just didn’t seem right to us," said Richard Ennis. The two founded their eponymous firm in 1981, and spent the next two decades quietly building an outfit that only sold conflict-free advice.

Jim Knupp retired and in 2000, Chairman Richard Ennis asked former alum, Stephen Cummings, to come back and run the shop. Cummings promoted talent and added research in private equity, real estate and “opportunistic strategies.” Assets under advisement that stood at $190 billion in 2000 have since quadrupled to $820 billion. The firm is today owned by 29 senior partners charging up to $625 an hour for their advice.

Ennis Knupp’s 160 institutional clients include GE Healthcare, the California State Teacher’s Retirement System, and the New Jersey Investment Council. Cummings says the firm’s next big push will be overseas. Ennis Knupp is currently advising U.S. institutional clients that 50.0% of their public equity should be invested abroad.

The firm’s rise hasn’t been without bumps or bad calls. A 1990's recommendation that the Chicago Policeman’s pension fund invest in Canada’s Cadillac-Fairview real estate portfolio ultimately ended in huge losses. In 2002, the San Bernardino Employees Retirement System fired Ennis Knupp for recommending an asset management firm that subsequently violated its leverage limits. But talk to past and present clients and it’s clear that Ennis Knupp gets high marks for its intellectual honesty and conflict-free advice.

Consider, for example, how Ennis Knupp steered Ohio through a high-profile financial and political crisis, a skill-set that will serve the U.S. Treasury well with the politically-sensitive TARP assignment: In 2005, it emerged that the Ohio Bureau of Workers’ Compensation’s $14.3 billion State Insurance Fund (SIF) was awash in politically-tainted corruption, a scandal that ultimately sent people to jail. Besides losing $215 million in an unauthorized offshore hedge fund, SIF had handed $50 million to a politically connected dealer who bought everything from coins to Beanie Babies.

The Republican governor asked Thomas J. Hayes, an official skilled at turning around troubled state bodies, to clean up the mess. In June, 2005, Hayes’ three-member board asked Ennis Knupp to find out whether SIF actually had $14.3 billion in assets, and, if so, what they should do. Ennis Knupp had 90 days to figure it out.

SIF’s filing system was in such shambles, Richard Ennis first had his junior staff refile everything so documents could be retrieved. Ennis Knupp ultimately confirmed that SIF did have $14.3 billion, but the Ohio Bureau of Worker’s Compensation’s claim that its SIF unit had a decade of 16.51% average annual returns, could not be established on “any basis whatsoever.”

In reality, SIF’s annual return was 7.3%. Simple index funds would have earned Ohio 8.1%, or an extra $1.0 billion. So the Hayes committee and Ennis Knupp made 40 clean-up recommendations to the Ohio governor.

Ennis Knupp was also tasked with reviewing and recommending the retention or firing of SIF’s asset managers. Each review was costing Ohio tens of thousands of dollars, and it was dripping out, every few days, that yet another asset manager had been canned. The political fallout was brutal.

That’s when Ennis Knupp recommended to Hayes that Ohio instead dismiss all asset managers “without prejudice” and park its assets in Index funds until some future date, when an orderly decision on managers could be made. Ennis Knupp’s elegant solution provided a face-saving exit for asset managers; it abruptly stopped the drip of bad news and lessened the political turmoil, and it cut considerably Ennis Knupp’s own fees, charged to Ohio on an hourly basis.

“Unquestionable integrity and professionalism,” says the retired Hayes. "If I had a personal portfolio of $1.0 billion, I would hire Richard Ennis and his team." Multiplied by 700, that's precisely what the U.S. Treasury has opted to do.

Chicago firm Ennis Knupp to oversee bailout portfolioBy Joshua BoakOctober 14, 2008The fate of the $700 billion federal bailout could rest in part on an expert billiards player from Chicago.

Richard Ennis advises companies, retirement funds and non-profit foundations on which investment managers they should hire. His latest client is the Treasury Department.

Over the next year, Chicago-based Ennis Knupp and Associates will help administer the portfolio of mortgage-backed securities the Treasury Department is buying from banks, according to a Monday announcement.

A former Ohio government official who worked through a controversy with Ennis was heartened by the selection.

“As a citizen, any concerns I had about how this will be handled have been alleviated,” said Tom Hayes, who recruited Ennis to unravel $14.3 billion in troubled state investments in 2005.

By taking hundreds of billions of dollars of toxic mortgage assets off corporate balance sheets, the government hopes to stabilize tumultuous financial markets and reignite lending across the economy. The assets are expected to be purchased mainly through an auction process, and the portfolio could turn a profit for taxpayers, the government has said.

Ennis Knupp will be responsible for developing investment guidelines for the portfolio, picking firms to manage the distressed assets and identifying any potential conflicts of interest. Among other jobs, the firm also will look for qualified minority and female-owned businesses to work on behalf of the portfolio.

The Treasury Department chose the consultant over two other bids from unidentified firms. Ennis Knupp contracted to receive up to $2.5 million for its services.

The contract signed Saturday put Ennis Knupp to work immediately, noting that the initial assets will be acquired within the next 30 to 45 days. Separately, money from the same fund will be used to make equity purchases in bank, the government said.

A spokeswoman for Ennis Knupp declined to comment about its participation in the bailout plan.

Ennis and Jim Knupp founded the consultancy in 1981, which now has 155 clients with total assets of $835 billion.

The firm has counted Honda, the Illinois Municipal Retirement Fund and the United States Conference of Catholic Bishops among its clients.

Ennis Knupp has stressed the importance of consultants being independent from the asset managers they recommend clients hire. That makes it able to present itself as a trustworthy adviser in politically sensitive situations.

“Without any doubt, it is one of the better firms in this area,” said Josef Lakonishok, chief executive of LSV Asset Management. “Ennis has a great reputation in the business. He’s very thorough and has a lot of integrity.”

For the Ohio government, Ennis Knupp analyzed a state insurance fund that failed to hold managers accountable. The fund hid a $216 million loss in an offshore hedge fund during the 2004 presidential election, later resulting in the hedge fund manager’s conviction for breaking the terms of his contract.

Tuesday, December 23, 2008

Sunday, December 21, 2008

Scott and Barbara Motto - Gayle and Tom Montes -2008Photo sent by Gayle Motto for the Phi Delta Psi Archives - The Museum of the San Fernando Valley. (click on image to enlarge)

PICT0085.JPGThe photo you had on your blog of Scotty Motto with a date at Pierce College showed him withBarbara Van Winkle who became his wife. We visited them at their lovely home in Dubuque,Iowa in September of this year. (2008)

Thursday, November 20, 2008

Beta Chapter Pledge Paddles - Archives of The Museum of the San Fernando Valley 2008 - from a scrapbook donated to The Museum by Jerry Berns (click on image to enlarge)

The Brothers of Phi Delta Psi Fraternity were very proud that they did not swat pledges as did other organizations. The only paddle in a Phi Delt house was the ritual emblem of a pledge class. Each class selected and made its own paddle with the names of each initiate in its group. They were proudly displayed in the Fraternity's meeting room.

George Gonzales 1966 - Archive of The Museum of the San Fernando Valley - Scrapbook donated by Jerry Berns 2008 - Photo only partially exposed.

George R. Gonzales pledged our Brotherhood in the Spring of 1966, at Los Angeles Pierce College. According to Br. John Bogdanoff, George practices law in the San Diego area. In 2007, he was living in Poway, California.

Wednesday, November 19, 2008

If you're in town for the Thanksgiving holidays, you might want to join Brs. Fredburg, Fecht and Talbot on this adventure.

FIRST ANNUAL WALK-IT-OFF - AN AFTER THANKSGIVING ADVENTURE

Woodland Hills, California November 19, 2008 The Museum of the San Fernando Valley is pleased to announce its first WALK-IT-OFF - great post Thanksgiving guide stroll through historic North Hollywood. Sponsored by the Universal City North Hollywood Chamber of Commerce, the Walk-It-Off is a leisurely exploration of one of the San Fernando Valley's most important cultural and historic areas. The great Walk-It-Off takes place on Saturday, November 29th, 2008 , from 10:30 am until 1 pm. The guided walk will begin at the Amelia Earhart statue on the north-west corner of Tujunga Avenue and Magnolia Street. it will culminate at the same location. The guides for the event will be, Dr. Jerry Fecht (president of The Museum and emeritus professor of history/humanities at Moorpark College, and the eminent preservationist and actor, Richard Hilton. The event is the first of several upcoming Valley tours designed to introduce area residents and visitors to the amazing history and culture of the San Fernando Valley. A donation of $10 per person is requested, with proceeds used to produce the future Valley awareness activities of The Museum. Public parking lots and on-the-street spaces are readily available in the NoHo. Participants are encouraged to contact The Museum to insure a place among the adventure group. Since it is chiefly an outdoor event, good walking shoes, sun-block, a hat and a camera are advised. There are good places to eat and enjoy a leisurely coffee in the NoHo. About The Museum of the San Fernando Valley: The Museum of the San Fernando Valley is in its developmental stage; obtaining input and gathering support from Valley residents, gaining support from the business, public, private, and non-profit sectors. The Museum’s organizational goals and objectives will always be a work-in-progress in order to meet the changing needs of a dynamic society. At the present, the San Fernando Valley has no significant museum of history and culture, serving the 1,800,000 residents of the area. The Museum of the San Fernando Valley is an educational and cultural institution. Its purpose is to acquire, display, and preserve artifacts, documents and records related to the San Fernando Valley and its residents. It strives to accomplish this through mobile exhibits, an interactive website, tours for schools and organizations, performances, lectures and an artifact loan program for San Fernando Valley schools.____________

Monday, November 3, 2008

Introduction to Alpha Chapter Rush Brochure - Scanned by LeRoy Hunt 2008 - Archives of The Museum of the San Fernando Valley (click on image to enlarge)

The process of "rushing" prospective pledges for the Phi Delta Psi Fraternity became more and more sophisticated as time passed. Here is an introduction message from a Rush Brochure during Dave Berman's administration.

Thursday, October 23, 2008

The Fraternity Bell - Pierce College - Scanned by LeRoy Hunt 2008 - Archives of The Museum of the San Fernando Valley - 1008-00B-001 (click on image to enlarge)Beta Chapter Brothers. (l-r top) Dave Page and Tom Kirby (l-r bottom) Harvey Mayfield and Sam HerrNote: In my old age, I can't quite recall the importance of this bell. It came along while I was in grad school at USC. I think it was an inner-chapter athletic trophy. Notice the "Lambda" Pledge Paddle behind these guys. This might give a clue as to the general time the photo was taken.

Beta Chapter Bar - Pierce College - Scanned by LeRoy Hunt 2008 - Archives of The Museum of the San Fernando Valley - 1008-00B-002 (click on image to enlarge)Brother Jim Colbert was Beta Chapter's "Keeper of the Keg", a position of considerable influence in the Fraternity.

Thursday, October 16, 2008

Ron Nelson - Pierce College - Archives of The Museum of the San Fernando Valley - 2008 (click on image to enlarge)Phi Delta Psi Fraternity's Pledge period lasted only 6 weeks, so it never developed that semi-servitude that went along with pledging a national fraternity, who had pledges to do menial work the year-round. As a result, most of the chores of maintaining a Fraternity House were done by active members. Periodically "work parties" were called, often before parties and parents' open house. Here Brother Ron Nelson trims a bush in front of the Beta House around 1967 or 68.

Brother Ron Nelson was initiated into the Phi Delta Psi Fraternity's Beta Chapter in the Spring of 1967. He entered L.A. Pierce College shortly after his graduation from Granda Hills High School in the late spring of 1967. Ron has a twin brother. He married Lou Holland's sister.

Note: My records on the younger Brothers of the Fraternity are limited, since I had already begun my teaching career. Information about Ron Nelson and his Chapter-mates is appreciated.

Gary Smith's Family & Grady Talbot - Archives of The Museum of the San Fernando Valley 2008Left: Fraternity Founder Grady Talbot, Gary Smith's brother, Beta Chapter Founder Gary Smith, and Gary's parents.(click on image to enlarge) Gary was a member of the Fraternity's Second Pledge Class in the Fall of 1957.

The Campaign for The Maple Leaf Endowment Fund is underway. Thanks to the following Friends and Brothers who have supported the effort. Thus far we have raised $3,012.13. We have several large pledges in the works, that will really help.Have a splendid fall! Jerry Fecht

Tuesday, October 14, 2008

I found this pledge test for Delta Chapter in an old Phi Delt scrapbook today. I thought I would challenge you to take it again after 45 years. Just for ducks! Jerry Fecht

Pledge Name _________________WRITTEN TEST

1. Write out the following" A. Greek Alphabet (include names and symbols) B. The Obligations C. The Standard D. The Creed E. The Original Founding Members F. The Founding Members of Delta Chapter G. Presidental Cabinet

2. Who was the first President of Delta Chapter?

3. Who was the second President of Delta Chapter?

4. Who were the third, fourth and fifth Presidents of Delta Chapter?

5. Who founded Delta Chapter?

6. Where was the first "real" Fraternity House located?

7, When and where did Phi Delta Psi begin?

8. What was the original name of the Fraternity?

9. Who designed your Pledge Pin?

10. Who designed your Fraternity Pin?

11. Who designed the Crest? When was it adopted?

12. What was the "Lady Plaque"?

13. Who founded the Alumni Association? When?

14. Who wrote the Fraterntiy song?

15. Name the Presidents and Vice Presidents of all three chapters of the Phi Delta Psi Fraternity.

Bill Eislaben 1989 - Photo courtesy of Jerry Berns - Archives of The Museum of the San Fernando Valley 2008 (click on image to enlarge)Last photographs of Br. Bill Eisleben

Bill Eislaben 1989 - Photo courtesy of Jerry Berns - Archives of The Museum of the San Fernando Valley 2008 (click on image to enlarge)Last photographs of Br. Bill Eisleben

Bill Eisleben and his children - Photo courtesy of Jerry Berns - Archives of The Museum of the San Fernando Valley 2008 (click on image to enlarge)

Bill Eisleben and his grandchildren - Photo courtesy of Jerry Berns - Archives of The Museum of the San Fernando Valley 2008 (click on image to enlarge)

Among the files shared with this blog by Brother Jerry Berns are these photographs of one of Phi Delta Psi's most loved leaders, Bill Eisleben. Jerry took, what we believe was, the last picture of Bill, a week before his death. Brother Bill Eisleben was born on the 24th of February 1944 in Long Beach, California. He graduated from Grover Cleveland High School in the San Fernando Valley. Bill was initiated into the Phi Delta Psi Fraternity in the Fall of 1962. He was the 332nd member of our organization. Bill Eisleben served the Brotherhood as President of Beta Chapter at Los Angeles Pierce College. Bill died in an airplane crash on the 8th of November, 1989 in San Diego County, California near the Mexican border. He was on a holiday in a four passenger Cesessna aircraft. Brother Eisleben was a convert to the Roman Catholic Church. His funeral was held at Saint Jude Thaddeus Church in Westlake Village. The shrine of St. Jude in the church's garden is dedicated to his memory. Bill's widow is Sherrie and children are: Erika, Annaliene and Elizabeth.

Richard Glazer-Danay - Archive of The Museum of the San Fernando Valley 2008 (click on images to enlarge) Image from Ric Glazer-Danay's Hart Hat Series. (click on image to enlarge) Brother Richard Glazer was born on August 12th. 1942. He is a 1960 graduate of Reseda High School. Ric was initiated into the Beta Chapter of the Phi Delta Psi Fraternity in the Fall of 1962. His pledge name was PreHeat 475. Prior to attending Los Angeles Pierce College, Rick served in the United States Army from 1961 to 1962. He served in the Army Reserves from 1962 to 1965. Ric Glazer earned a Bachelor of Arts degree from California State University Northridge in 1970, a Masters of Arts from California State University Chico in 1972 and a Master of Fine Arts degree from the University of California Davis in 1978. Ric is an accomplished, world-renowned artist. He taught painting for sometime at California State University, Chico. In 2004 Brother Glazer is a Professor and Chair of American Indian Studies at California State University at Long Beach. He was the chairman of the American Indian Studies Program at the University. A certified member of the Caughnawaga-Turtle Clan of the Kahnawake Band of Native Americans, Richard Glazer-Danay is a world famous artist. " His art is derived from both pop and postmodernist art movements, and he employs a wry and ironic sense of humor in his interpretation of Indian themes and the status of women in modern American life. He is both a painter and a sculptor who can combine these media in the same work. Inspired by his ironworking family, Danay is best known for his hard hat art." He has been a consultant for the U.S. Office of Education, Office of Indian Education, U.S. Forest Service, Civil Rights compliance, and the National Endowment for the Humanities. Glazer-Danay is a member of the National Indian Education Association, College Art Association, Great Lakes Inter-Tribal Education Committee, and the board of directors for Educational Opportunity Center, Oneida Tribe of Wisconsin. He has been a lecturer and conference/panel participant on curriculum, art, and opportunity issues; instructor/coordinator, American Indian Studies, California State University, Chico; instructor, Native American studies and acting director, C. N. Gorman Museum, University of California, Davis; coordinator, American-Intercultural Programs/American Indian Studies, University of Wisconsin, Green Bay; California State University, Long Beach; commissioner, Indian Arts and Crafts Board, U.S. Department of the Interior. “Richard Glazer Danay comes from a dual heritage in that he is a Mohawk from the Caughnawaga Reserve near Montreal, and Jewish. His art is derived from both "Pop" and postmodernist art movements, and he employs a wry and ironic sense of humor in his interpretation of Indian themes and the status of women in modern American life. He is both a painter and a sculptor who can combine these media in the same work. In the words of University of California/Riverside Professor of Art, William Bradshaw, Glazer Danay can create "constructions of outstanding boldness and power. The work is bright, witty, satirical, and very strong in form and content." In a word, he is unique: no one is doing work quite like his. Glazer Danay is influential in the American art world for his art as well as for his role as a prominent educator and as a member of the U.S. Department of the Interior Indian Arts and Crafts Board.” Glazer-Danay has exhibited widely in the United States and in Europe. His works are widely included in publications across the world. His works are in the collections of the British Museum, Vienna's Museum fur Vokerkunde, the Heard Museum in Phoenix and the Philbrook Museum. He has donated several cartoon works for the Phi Delta Psi reunions. Ric and Gayle were married on the 5th of September 1970. They share two children: a son Brant and a daughter Brooke .

Family of LeRoy and Sherry Hunt - 1989 - Archives of The Museum of the San Fernando Valley -2008 (click on image to enlarge) Nineteen years ago LeRoy and Sherry Hunt sent this photograph of their family to Br. Jerry Berns in a Christmas card. Jerry shared a box full of Phi Delt treasures with me (Jerry Fecht) this afternoon, among which is this great photograph. Next to LeRoy is his daughter Deanna, Sherry Hunt, and son Jerry. Deanna was 22 and Jerry was 24 in the picture.LeRoy is amassing an electronic photographic archive of our Brotherhood.

Tuesday, October 7, 2008

Greetings Brothers and Friends,In six days our Fraternity will be 52 years old. Our Scholarship Endowment continues to grow - understandably a bit slower this year.We have received $2,142 since the onset of our campaign, not counting those of you have promised to help out.I will continue not publishing your contribution amounts, assuming folks send what they can. Won't you join in our effort?

William Benson - Delta Chapter - Scanned by LeRoy Hunt - Archives of The Museum of the San Fernando Valley -2008 (click on image to enlarge)

Brother Bill Benson was born on the 26th of September in Santa Barbara, California. He is a graduate of Hollywood High School. From 1955 to 1959 he served in the United States Navy. Bill was initiated into the Delta Chapter of the Phi Delta Psi Fraternity in the Spring of 1960. He earned an Associate of Arts degree from Los Angeles City College, and transferred to California State University Los Angeles. Bill went into his family's hardware store business after college. He eventually owned a small store in Oxnard. In 2004, he was semi-retired and working for the Home Depot Store in Oxnard, California. His most recent home is in Dewey, Arizona.

Monday, October 6, 2008

William Herbert Corwin - Phi Delta Psi Fraternity - Scanned by LeRoy Hunt - Archives of The Museum of the San Fernando Valley - 2008 (click on image to enlarge)

Brother William Corwin was born on the 19th of May in Los Angeles, California. He graduated from Van Nuys High School in 1960. Bill was initiated into the Phi Delta Psi Fraternity in the Fall of 1961. In 2008, Bill is living in Newbury Park, California.

Saturday, October 4, 2008

Michael Levine - Beta Chapter - Scanned by LeRoy Hunt - Archives of The Museum of the San Fernando Valley 2008 (click on image to enlarge)

Brother Michael Levine was born on the 27th April in Culver City, California. He graduated from Venice High School in 1966, and pledged our Brotherhood in the Spring of 1967. He was a business major while a member of our Los Angeles Pierce College Beta Chapter. Only a few more things are known about him. His wife is Pam and he lived for awhile on May Street in Los Angeles. The Fraternity conducted an extensive search for him in 2006.

Friday, October 3, 2008

Installation of Ralph Muzzillo by Bob Robar - Photo courtesy of Bob Robar - Archives of The Museum of the San Fernando Valley 2008 (click on image to enlarge)This photo has been significantly enlarged from the original.

Delta Chapter Los Angeles City College - Pledge Active Party Invitation - Collection of Bob Robar - Archives of The Museum of the San Fernando Valley 2008 (click on image to enlarge)April 1961

Brothers of Alpha Chapter of Phi Delta Psi - Photo courtesy of Bob Robar - Archives of The Museum of the San Fernando Valley - 2008 (click on the image to enlarge)

When Roy LoBianco wrote the Fraternity's song, he used to the melody from an old time song, Heart of My Heart. One line in the that original song went, "... we were rough and ready guys, but oh how we could harmonize!" I don't know the occasion for this picture of the Alpha Chapter Brothers, but this is the way they really were.

Brother Phi Capka was born on the 17th of May 1943. He attended Notre Dame High School and later graduated from Van Nuys High School. He was initiated into our Brotherhood at Los Angeles Pierce College Beta Chapter in the Spring of 1962. Phil was the historian of his Pledge Class. After college Phil became a professional chef in Portland, Oregon. He was married for some time to Donna D. (Mc Crummen). Few men have been loved more that Phil Capka. Phil Capka Presents Pledge History 1962. Photo courtesy of Bob Robar - Archives of The Museum of the San Fernando Valley 2008 (click on image to enlarge)

Jim Cobert - Photo courtesy of Bob Robar - Archives of The Museum of the San Fernando Valley 2008 Bar at the Beta Chapter House click on image to enlarge)

I was at the University of Southern California when these Brothers were initiated into Phi Delta Psi's Gamma Chapter. Your help is needed to identify these folks. Refer to the number under each photograph and email the name to Jerry Fecht (jerry@anchoreducation.com) or put your observation in the comments section at the bottom of this posting.

Gamma Chapter Initiation - Photo Number G-1 - collection of Bob Robar - Archives of The Museum of the San Fernando Valley - 2008 (click on image to enlarge)

Gamma Chapter Initiation - Photo Number G-2 - collection of Bob Robar - Archives of The Museum of the San Fernando Valley - 2008 (click on image to enlarge)

Gamma Chapter Initiation - Photo Number G-3 - collection of Bob Robar - Archives of The Museum of the San Fernando Valley - 2008 (click on image to enlarge)

Gamma Chapter Initiation - Photo Number G-4 - collection of Bob Robar - Archives of The Museum of the San Fernando Valley - 2008 (click on image to enlarge)